I believe state capital funds cannot be used for dorms. Only academic infrastructure.
You appear to be correct on this matter. I checked and found out in the last biennium Ohio received $56 million in capital improvement funds from the General Assembly. Most of these funds were used for the construction of a new three-story, 120,000-square-foot building for the Heritage College of Osteopathic Medicine. The new building, now under construction, is located on Union Street near main medical school building. Additionally, the funds also supported the renovation of the Human Resources Training Center. I think that this is in the west wing of Grosvenor Hall.
Do you have an article that supports the 56 million from the general assembly? It appears to me its a one off spot contribution from the state rather dependable money source for buildings. For that reason I definitely wouldn't count it as money the university can rely on. The University has wanted to fill the open lot behind BW3s for years since tearing down the building on that spot but according to the university its required a donation from the business college for that one to start building.
Look up the capital improvements budget for last biennium. I don't have time to find the URL again, it takes some shifting through a massive pdf file to find the right line items. Once you get to the right page, you'll see the money is clearly listed.
The capital improvement budget is voted on every two years by the General Assembly. There is no set formula, it's whatever the university lobbyist can get their favorite legislator to sponsor and get through the legislature. So, no it can't be depended upon in any literal sense, but the university has been requesting and receiving this money for years, some years they get more and some years less, depending on need and on the acumen of the university's lobbyists.
The osteopathic college was a favorite of the General Assembly in years past, in part, because of the lobbying skills of the late George Dunigan. George was very instrumental in getting the legislature to pass the bill creating our medical school. He was an employee of the Ohio Osteopathic Association at that time. Later, he was so good at his job that he became an employee of the medical school and lobbied not only for medical school projects but for other Ohio University projects. One time the Columbus Citizen-Journal published a list of the top ten lobbyist in Ohio and George was on that list!